by business editor Trevor Sturgess

The future is uncertain for scores of workers at a distribution business with sites in Kent.

Smith News (W H Smith) and John Menzies bought Dawson News’s distribution business out of administration for £2m.

The move, which could safeguard about 2,500 jobs, followed the loss of several multi-million pound contracts.

Dawson News, the trading name of Surridge Dawson and the division of Dawson which delivers newspapers and magazines to the newsagents of England and Wales, went into administration on Tuesday.

Dawson News has an office on Medway City Estate, Strood, and other offices in the county. Their fate is unclear at the moment but Menzies is expected to consolidate its operations in offices in Maidstone and Ashford, with the Medway office likely to close. Some jobs may go.

Dave Shedden, a spokesman for Menzies Distribution, said the business had taken over the former Dawson News businesses in Kent - and all staff employed there.

“The business will operate as usual for the next several weeks, until we have an opportunity to assess fully the situation on the ground. At that point, we will consult with staff on those changes, if any, which we decide to make to the business.”